Yaffe: B.C. Premier has no choice but to stand firm on the pipeline

Precedent exists for demanding sun and moon in exchange for energy right-of-way

For Alberta, B.C. is fast becoming the neighbour from hell, as West Coast opposition mounts to new or expanded pipelines across its turf. Premier Christy Clark has no choice but to stand firm on the pipeline.

Photograph by: ADRIAN LAM
, TIMES COLONIST

With everyone gung ho about a national energy strategy for Canada, B.C. is poised to be a spoiler as premiers gather today in Halifax.

Creating a pan-Canadian plan for developing, transporting and marketing the country’s vast energy reserves is a key agenda item at this week’s Council of the Federation meetings, which run to Friday.

Alberta Premier Alison Redford has been talking up such a project since her election victory last October, asserting the oilsands are an enterprise offering economic benefits for all Canadians.

She has been successful in bringing onside an assortment of premiers, who are set to discuss energy policy coordination at their Halifax conference.

The question is: Will B.C. stand apart as it expresses reservations about the Northern Gateway pipeline?

The pipeline, aimed at carrying oilsands crude from northern Alberta to the Pacific coast for shipment to Asian markets, obviously would be a crucial component of any national strategy.

On Monday, B.C. Premier Christy Clark laid out stiff conditions for provincial support for Northern Gateway.

Clark likely will be under the gun as the other premiers line up behind a national strategy, seeing job-creation opportunities for their provinces.

Following a meeting last week with Redford at a posh Toronto eatery, Dalton McGuinty was quoted as saying: “We have found a lot of common ground and, among other things, we are determined to ensure that Ontarians understand that they have a vested interest in the continuing growth and prosperity of Alberta.”

This notion of a national energy strategy, which would include natural gas, hydro power and renewable energy resources, similarly has been endorsed by a Conservative-led Senate committee and by the Canadian Council of Chief Executives, representing business leaders.

The Harper government, too, is backing the initiative, with Natural Resources Minister Joe Oliver stating: “We have an interest in a pan-Canadian collaboration.”

All well and good. But it is B.C. being asked in the early stages of this policy initiative to do the heavy lifting.

The Northern Gateway proposal poses significant risk to the environment of Canada’s most green-minded province, and cannot go ahead unless British Columbians are in agreement. Aboriginal groups are threatening to take court action which could result in onerous legal costs for taxpayers.

The people of B.C. have demonstrated in the past they won’t be steamrollered into submission. Look at their activist response to the imposition of the HST.

And B.C. would not be the first province in this country to make onerous demands in its own self-interest in exchange for tolerance of an energy right-of-way across its turf.

Under a 70-year contract signed in 1969 by the governments of Newfoundland and Quebec, Quebec City takes the lion’s share of revenue from the Upper Churchill hydro project in Labrador.

That’s because the Newfoundland power must traverse Quebec to reach markets in the Northeastern U.S.

To date, Quebec has earned about $20 billion on the deal, compared to $1 billion for Newfoundland.

Which suggests a strong precedent exists within Canada for one province demanding the sun and moon from another for the privilege of transporting energy across its territory.

And pipelines carrying bitumen stand to be a lot dirtier than any hydro corridor.

In B.C.’s case, the issue is not so much profit as environmental concern — as well as aboriginal land claims — and Victoria has every right to resist pressure from other premiers.

With so much at stake for B.C., Premier Clark can be expected to stand her ground in discussions with her counterparts. Politically, she has no choice.

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For Alberta, B.C. is fast becoming the neighbour from hell, as West Coast opposition mounts to new or expanded pipelines across its turf. Premier Christy Clark has no choice but to stand firm on the pipeline.

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